1 The 39 Assurances 1. General Federal Requirements 2. - - PDF document

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Airport Sponsor Assurances Background on Assurances To secure Airport Improvement Program (AIP) grant funds, an airport sponsor is required to give certain assurances to the FAA known as the Airport Sponsor Assurances.

• In essence, airport sponsors must agree to

comply with the Assurances (currently 39) as a condition of receiving AIP grant funds.

Background on Assurances The Assurances provide a means for the federal government to ensure that public- use airports are developed, operated, and maintained in a safe, secure, efficient, compatible, and compliant manner.

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The 39 Assurances

• 1. General Federal Requirements
• 2. Responsibility/Authority of the Sponsor
• 3. Sponsor Fund Availability
• 4. Good Title
• 5. Preserving Rights and Powers
• 6. Consistency with Local Plans
• 7. Consideration of Local Interest
• 8. Consultation with Users
• 9. Public Hearings
• 10. Air and Water Quality Standards

The 39 Assurances

• 11. Pavement Preventative Maintenance
• 12. Terminal Development Prerequisites
• 13. Accounting System, Audit, and Record

Keeping Requirements

• 14. Minimum Wage Rates
• 15. Veteran’s Preference
• 16. Conformity to Plans and Specifications
• 17. Construction Inspection and Approval
• 18. Planning Projects
• 19. Operation and Maintenance

The 39 Assurances

• 20. Hazard Removal and Mitigation
• 21. Compatible Land Use
• 22. Economic Nondiscrimination
• 23. Exclusive Rights
• 24. Fee and Rental Structure
• 25. Airport Revenues
• 26. Reports and Inspections
• 27. Use by Government Aircraft
• 28. Land for Federal Facilities
• 29. Airport Layout Plan

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The 39 Assurances

• 30. Civil Rights
• 31. Disposal of Land
• 32. Engineering and Design Services
• 33. Foreign Market Restrictions
• 34. Policies, Standards, and Specifications
• 35. Relocation and Real Property Acquisition
• 36. Access By Intercity Buses
• 37. Disadvantaged Business Enterprises
• 38. Hangar Construction
• 39. Competitive Access

Economic Non-Discrimination

Airport Assurance 22 Economic Non-Discrimination Sponsor will make its airport available as an airport for public-use on reasonable terms and without unjust discrimination to all types, kinds, and classes of aeronautical use.

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Economic Non-Discrimination Each commercial aeronautical activity (operator) shall be subject to the same rates, fees, rentals, and other charges as are uniformly applicable to all other such

• perators making the same or similar

uses of the airport and utilizing the same

• r similar facilities.

Economic Non-Discrimination Each commercial aeronautical activity (operator) shall furnish services on a reasonable and not unjustly discriminatory basis to all airport users.

• This provision shall be included in the

agreement with the operator and shall be enforced by the sponsor.

Economic Non-Discrimination Terms and Conditions of Use

• Sponsor may establish reasonable and not

unjustly discriminatory conditions to be met by all users of the airport as may be necessary for the safe and efficient operation

• f the airport.

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Economic Non-Discrimination Terms and Conditions of Use...

• Sponsor may prohibit or limit any type, kind,
• r class of aeronautical use.

 Must be necessary for safe operation of “airport”. OR  Must be necessary to serve the civil aviation needs of the “public”

• FAA must concur with sponsor

Economic Non-Discrimination Commercial Aeronautical Activity by Sponsor

• Sponsor may engage in competitive

commercial aeronautical activity.

 Subject to same conditions as applicable to competing contractors or concessionaires.

Economic Non-Discrimination Self-Service

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Self-Service Sponsor will not exercise or grant any right or privilege which operates to prevent any person operating aircraft on the airport from performing any services

• n its own aircraft with its own employees

and equipment that it may chose to perform including, but not limited to, maintenance, repair, and fueling of aircraft. Self-Service Each air carrier using the airport shall have the right to service itself or to use any commercial flight support service provider authorized or permitted by the airport to serve any air carrier at the airport. Airport Assurance 23

Exclusive Rights

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Exclusive Rights Prohibition against exclusive rights

• Sponsor will permit no exclusive right for the

use of the airport by any person providing, or intending to provide, aeronautical services to the public (47107(a)(4)).

Exclusive Rights Definition of an exclusive right

• Any power, privilege or right excluding or

debarring another from enjoying or exercising a like power, privilege, or right.

Exclusive Rights How is an exclusive right conferred?

• By express agreement
• By the imposition of unreasonable terms,

conditions, and standards

• By any other means
• May be conferred on one or more parties

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Exclusive Rights Proprietary Exclusive Right

• Sponsor may engage in any commercial

aeronautical activity and deny same rights to

• thers without violating prohibition.

 Only as a principal

– Using its own employees, equipment, and resources

Exclusive Rights Single Operator is OK if...

• It would be unreasonably costly,

burdensome, or impractical for more than

• ne FBO to provide aeronautical service(s)

AND

• Allowing more than one FBO to provide

service(s) would require the reduction of space leased under an existing agreement

Airport Assurance 24

Fee and Rental Structure

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Fee and Rental Structure Sponsor will maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible under the circumstances existing at the particular airport. Primary Management and Compliance Documents Primary Management and Compliance Documents Definition

• A compendium of documents that govern the:

 Operation  Management, and  Development of an airport

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Primary Management and Compliance Documents General Provisions Leasing/Rents and Fees Policy

• Lease, Use, or Operating Agreements

Minimum Standards

• Commercial Operator Permit

Rules and Regulations Development Standards Primary Management and Compliance Documents

Purpose – in combination, these documents:

• Contribute to the financial health of an airport
• Facilitate (foster) orderly development
• Promote the provision of quality products,

services, and facilities

• Protect the health, safety, interest, and

general welfare of the public

• Reduce the potential for conflict with

lessees, consumers, and users

 Reduce the potential for (and provide a platform for the resolution of) Part 13 (informal) and 16 (formal) complaints Compliance

Primary Management and Compliance Documents Role

• Set the stage (parameters) for the way an

airport does business

• Play an important (essential) role in the
• peration and management of an airport

(large or small)

 Essential to have all of these documents (or tools) in the airport manager’s toolbox

• While these documents are interrelated, they

function independently of each other

Compliance

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Primary Management and Compliance Documents Beyond serving the intended purpose (role), these documents need to be consistent with (not duplicate):

• Airport Sponsor Assurances
• Applicable regulatory measures
• Other compliance related directives issued

by the FAA

 Policies  Orders (e.g., 5190.6B)  ACs (e.g., 150/5190-6 and 150/5190-7)

Primary Management and Compliance Documents

DEVELOP LEASING/RENTS AND FEES POLICY LEASE, USE, OR OPERATING AGREEMENT MINIMUM STANDARDS OCCUPY ENGAGE GENERAL (UMBRELLA) PROVISIONS USE DEVELOPMENT STANDARDS RULES AND REGULATIONS

General (Umbrella) Provisions Definition

• The provisions that are common to all

PMCDs including definitions (key terms)

Role/Purpose

• Eliminates redundancy (instead of restating

the common provisions in each document)

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Leasing/Rents and Fees Policy Definition

• Sets forth the parameters for leasing airport

land and improvements and outlines the process for establishing and adjusting rents and fees

Role/Purpose

• Conveys the airport’s leasing (and rents

and fees) policies/practices

 Applies to entities who want to occupy/use airport property (new and/or renewal of existing agreements)

Leasing/Rents and Fees Policy Major Sections

• Introduction
• Leasing Land and/or Improvements
• Agreements
• Rents and Fees (Setting and Adjusting)
• Appendix

Minimum Standards Definition

• Sets forth the requirements that need to be

met to engage in commercial aeronautical activities at an airport

Role

• Establishes consistent threshold

requirements – which levels the playing field and promotes fair competition among

• perators (minimum “ante”)

 Applies to entities who want to engage in commercial aeronautical activities at an airport

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Minimum Standards Purpose (AC-150/5190-7)

• To protect the level and quality of services
• ffered to the public

 Promote safety in all airport activities  Maintain a higher quality of service for airport users  Protect airport users from unlicensed and unauthorized products and services  Enhance the availability of services for all airport users  Promote the orderly development of airport land  Prevent disputes between aeronautical providers and reduce the potential for complaints

– Order 5190.6B

Minimum Standards Major Sections

• Introduction
• General Requirements
• Fixed Base Operator (FBO)
• Specialized Aviation Service Operators (SASO)
• General Aviation Permit

Rules and Regulations Definition

• Sets forth the rules and regulations for the

safe, orderly, and efficient use of an airport

Role/Purpose

• Protects the public health, safety, interest,

and welfare on the airport

 Applies to all persons using the airport – at all times – for any purpose

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Special Development Considerations Rules and Regulations should…

• Emphasize those areas (i.e., operations or

activities) that are unique to the airport

• Complement (not duplicate) other Primary

Management and Compliance Documents or any “applicable” regulatory measures

• Be a separate (stand alone) document

Major Sections

• Introduction
• General Rules and Regulations
• Aircraft Rules and Regulations
• Vehicle Rules and Regulations
• Lessee Rules and Regulations
• Aviation Fueling

Rules and Regulations Development Standards Definition

• Sets forth the parameters governing the design,

development, and/or modification of general aviation improvements at an airport

Role/Purpose

• Promotes (and ensures) consistent, attractive,

and compatible high quality general aviation development at an airport

 Applies to any entity who wants to develop and/or modify improvements at the airport

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Alternatives Playing Calvinball

• Using a “make up the rules as you go

approach” to planning, developing,

• perating, and managing an airport

Managing by Lease (MBL)

• Planning, developing, operating, and

managing an airport based on existing leases (terms and conditions)

Both approaches are highly problematic!

• Increase the potential for:

 Conflict, complaints, and/or disputes

Calvinball

Terminology

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Terminology Fixed Base Operator (FBO)

• Airport based service organization
• Agreement with airport owner/operator
• Provides fueling services and engages in a

minimum of one of the four primary service areas

Terminology

Primary Service Areas

• Location based services

 Line services/ground handling  Crew and passenger services  Facilities

– Tiedown, hangar, and office

• Technical services

 Aircraft maintenance and parts  Paint and interiors

• Flight services

 Charter and aircraft management  Flight training and aircraft rental

• Aircraft sales

Terminology Fixed Base Operator (FBO)

• Full Service FBO

 Provides fueling and engages in all four primary service areas

• Limited Service FBO

 Provides fueling and engages in location based services only

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Terminology

Specialized Aviation Service Operator (SASO)

• May not have an agreement with the airport

 Commonly a sublessee of an FBO

• Typically engages in only one of the four primary

service areas

 Commonly engages in only one specialty  Typically compliments the FBO’s “core” capabilities

• Does not provide fueling services
• Shopping mall concept

 FBO = department stores (anchor tenants)  SASO = specialty stores

Terminology Aeronautical Activity (Use)

• Any activity or service that involves, makes

possible, facilitates, is related to, assists in, or is required for operation of aircraft,

• r which contributes to or is required for

safety of aircraft operations

Terminology Commercial (for hire)

• For the purpose of securing earnings,

income, compensation (including exchange

• r barter of goods and services), and/or profit

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Terminology Non-Commercial (not for hire)

• Not for the purpose of securing earnings,

income, compensation (including exchange

• r barter of goods and services), and/or profit

 A non-commercial aircraft operator owns and/or

• perates aircraft that is incidental or ancillary to

the business (i.e., the aircraft is used only to provide transportation for the exclusive use of employees, agents, and/or customers of the business and not for commercial activities) or the aircraft is used strictly for private (not for hire), personal, or recreational purposes only

Terminology Employee

• Any individual employed by an entity

whereby said entity collects and pays all associated taxes on behalf of employee

 The determination of status between employee and contractor shall be made according to current IRS codes

Terminology Independent Operator

• A entity offering aeronautical service(s) but

without an established place of business on the airport

 Independent operators do not have a lease agreement (with the airport) or sublease agreement (with an operator at the airport)

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Terminology Through-the-Fence (TTF) Operation

• The ground movement of aircraft to/from

land adjacent to, but not part of, airport property to/from the airport’s airside infrastructure (e.g., runways and taxiways)

 TTF operations occur when an airport sponsor grants an entity ground access by an aircraft across the airport’s property boundary to the airport’s airside infrastructure and permission to engage in associated activities from property adjacent to the airport

– A fence (with gates) may or may not exist ACRP Report 114

Terminology Self-Service

• The servicing of an aircraft (i.e., maintaining,

repairing, fueling, etc.) by the aircraft owner

• r the aircraft owner’s employee(s) using the

aircraft owner’s vehicles, equipment, and resources

 Self-service is allowed provided there is no attempt to perform such services for others for compensation and conditioned on compliance with the airport’s primary management and compliance documents and applicable regulatory measures

Terminology Self-Fueling

• The non-commercial fueling of an aircraft by

the aircraft owner or the aircraft owner’s employee(s) using the aircraft owner’s vehicles, equipment, and resources

Self-Serve Fueling

• The fueling of an aircraft by the pilot using

commercial fuel pump installed specifically for this purpose

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Development and Review Process

Development Process Overview

• Identify and understand influencing factors

 Internal and external

• Solicit stakeholder input (outreach program)

 On-airport and off-airport

• Consult resources and references
• Utilize a structured development/review

process

• Conduct a comprehensive assessment

 Land and improvements  Operators

Influencing Factors Internal factors

• Managerial

 Mission (purpose)  Vision (aspirations)  Values (beliefs)  Goals, objectives, action plans (and budgets)

• Existing guiding documents

 Policies, procedures (SOPs), memorandums, directives, correspondence, etc.

• Airport profile

 Airport type, infrastructure, products, services, and facilities

Buy-In ACRP Report 77

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Influencing Factors Internal factors…

• Airport profile…

 Activity levels

– Based aircraft, aircraft operations, and fuel volumes

• Planning and development

 Master Plan (ALP)/Land Use Plan

– Available land and improvements » Designated uses (highest and best) – Anticipated future growth/development

• Financial and economic

 Rents, fees, and other charges

Influencing Factors External factors

• Political

 Governing body  Operators (FBOs and SASOs), other lessees (non-commercial), consumers, users, and community

• Community
• National, regional, and local marketplace

Buy-In

Input Sources On-Airport

• Governing body
• Operators, lessees, consumers, and users

Off-Airport

• Industry colleagues (peers)
• Professional advisors (consultants)
• Community
• FAA

Methods

• Committees, working (focus) groups, task forces
• Public meetings (open house/forum)

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Resources and References FAA Orders…

• Order 5100.38C, Airport Improvement

Program (AIP) Handbook, June 28, 2005

• Order 5190.6B, FAA Airport Compliance

Manual, September 30, 2009

 Replaced Order 5190.6A (its predecessor document) which was originally written to provide guidance for FAA “compliance” personnel to help interpret the Airport Sponsor Assurances and investigate and resolve complaints or disputes

– Recommends that airport sponsors develop and implement Minimum Standards

Resources and References FAA Advisory Circulars

• The FAA issues ACs to:

 Help explain the intent of a regulation  Provide guidance and information to the aviation public in a designated subject area  Show a method acceptable for complying with a related regulation

• When incorporated by reference in the

Airport Sponsor Assurances, ACs become mandatory (contractual) obligations of the sponsor

Resources and References FAA Advisory Circulars…

• AC 150/5100-16A, AIP Grant Assurance

Number One – General Federal Requirements, October 4, 1988

• AC 150/5150-2B, Federal Surplus Personal

Property for Public Airport Purposes, October 4, 1984

• AC 150/5190-6, Exclusive Rights at

Federally Obligated Airports, January 4, 2007

• AC 150-5190-7, Minimum Standards for

Commercial Aeronautical Activities, August 28, 2006

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Resources and References FAA Policy Statements

• Policy Regarding Airport Rates and Charges

 Federal Register

– Volume 61, Number 121, June 21, 1996

• Policy and Procedures Concerning the Use
• f Airport Revenue

 Federal Register

– Volume 64, Number 30, February 16, 1999

Review Process Importance of structure

• Internal development/review

 Management  Operations  Properties  Risk Management  Legal  Governing Body

• External review

 Key Stakeholders (Outreach Program)  FAA (Airport District Office)

Assessment Land and improvements

• “Available” verses “leased” (lease summary)

Operators

• Products, services, and facilities (and

amenities)

• Vehicles and equipment
• Personnel
• Hours of operation
• Certifications and licenses
• Insurance

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Final Work Products Self-contained

• With exception of references

Easy to read and follow

• Well organized, clear, and concise

Compliment (not duplicate)

• Applicable federal, state, and local regulatory

measures

Final Work Products Review and Update

• Once developed, these documents should

be reviewed on a periodic basis and updated (as needed)

 It is important to ensure that these documents are (and continue to be) relevant for the activities and reasonable and appropriate for the market and the airport

– Situations and/or circumstances can change » Industry, market, airport, etc.

Concluding Thoughts How important is the process?

• The process can be more important

(and more beneficial) than the final work product (final documents)

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Concluding Thoughts… If consistent with the Airport Sponsor Assurances and other compliance related directives issued by the FAA…

• PMCDs will reduce the potential for (and

provide a platform for resolving) conflicts, complaints (Part 13 or 16), and disputes (including lawsuits)

Question and Answer Primary Management and Compliance Documents